What taxes are paid at closing?

In this blog, we will bring clarity into the calculations and definitions of taxes involved in real estate transactions in Florida, and this knowledge will empower you.

We will dive into all the expenses involved to insure that you are well-prepared and understand what you are paying for.

Let’s understand which real estate taxes are typically indicated in Section E.

Your taxes and government fees can be found in Section E of your Loan Estimate or Closing Disclosure. So who collects them – the federal government, title companies, or lenders?

These taxes are imposed by the state of Florida and are calculated through a formula provided by the state. They are specified in Section E and referred to as Documentary Stamps Tax and Intangible Tax. These fees to the state can be explained as means of compensating for the absence of a state income tax.
Therefore, the state needs to generate revenue for the budget through alternative means, and a significant portion comes from real estate transactions in Florida. If you require a specific formula for calculating these taxes, you can contact Krista DeStefano or check your county’s website.

Are real estate taxes expenses negotiable?

As mentioned earlier, these taxes in Florida are set by the state and are calculated using a specific formula based on the mortgage amount. Therefore, taxes are levied on the mortgage loan, which will be registered in the state system to be valid.

However, there are some mortgage programs that exclude the Intangible Tax. These might be certain programs that provide assistance for the down payment.

Thus, taxes in real estate transfer are regulated by the state through a standard formula dependent on the mortgage amount. If you need further information purchasing real estate in Florida, or if you would like to discuss your specific situation, please, call at 407-970-8245.

If you are ready to start building wealth through homeownership, apply today and unlock the doors to your dreams!

Also, make sure to follow us on Facebook and Instagram where we post important news and interesting facts every week!

(Note: This blog post is intended for informational purposes only and should not be considered as legal, tax, or financial advice. Consult with a qualified professional for personalized guidance.)